The US Department of Justice (DOJ) arrested two brothers accused of orchestrating an attack on the ethereum blockchain that resulted in the theft of $25 million in cryptocurrency.
Anton Peraire-Bueno of Boston and James Pepaire-Bueno of New York are charged with conspiracy to commit wire fraud, wire fraud and conspiracy to commit wire fraud. money laundering.
12 Second ethereum Exploit
He ethereum-blockchain-and-stealing-25m-cryptocurrency” target=”_blank” rel=”noopener nofollow”>Justice Department indictment alleges that the defendants fraudulently exploited the integrity of the ethereum blockchain to obtain the substantial sum in a short period of 12 seconds. The brothers were arrested in Boston and New York and are scheduled to appear before magistrates in their respective districts.
Deputy Attorney General Lisa Monaco described the alleged scheme as a “technologically sophisticated and meticulously planned” effort executed in seconds.
The indictment reveals that the defendants planned the blow for several months, using his knowledge and experience in computer science and mathematics in cryptocurrency trading to manipulate the protocols of the ethereum blockchain.
By altering pending transactions, Anton Peraire-Bueno and James Pepaire-Bueno gained unauthorized access and altered the price movement of ethereum, ultimately stealing $25 million from unsuspecting victims.
Brothers face maximum prison sentence
U.S. Attorney Damian Williams for the Southern District of New York emphasized the importance of the case and stated that the defendants' actions cast doubt on the integrity of the blockchain.
The accusation highlights the alleged protocol exploitation trusted by “millions of ethereum users around the world.”
Despite the novelty of the scheme, which is the first of its kind to manipulate the ethereum blockchain, prosecutors in the Southern District of New York have vowed to pursue those who attack financial systems.
They emphasized that no matter how sophisticated the fraud or how unique the techniques used, the office will hold perpetrators accountable.
Special Agent in Charge Thomas Fattorusso of the IRS Criminal Investigation (IRS-CI) New York Field Office noted that the unit followed the money trail in this case, using “cutting-edge technology” and traditional research methods both inside and outside the blockchain.
Fattorusso highlighted the alleged manipulation of the ethereum blockchain, where the defendants fraudulently accessed and altered pending transactions to steal cryptocurrency from victims. Fattorusso further alleged:
These brothers allegedly committed a first-of-its-kind manipulation of the ethereum blockchain by fraudulently gaining access to pending transactions, altering the movement of the electronic currency, and ultimately stealing $25 million in cryptocurrency from their victims.
If convicted, Anton Peraire-Bueno and James Pepaire-Bueno could face a maximum sentence prison sentence 20 years for each position.
At the time of this report, ethereum is trading at $2,982, indicating a 3% price increase in the last 24 hours. This upward trend follows bitcoin, which is up 5.5% over the same period as it strives to reclaim the $65,000 milestone.
Featured image from Shutterstock, chart from TradingView.com
